U.S. suspends significant military aid to Egypt

By Elise Labott, CNN Foreign Affairs Reporter

Updated 7:05 PM ET, Wed October 9, 2013

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Unrest in Egypt – A bus passes a destroyed pickup truck with loudspeakers that was used by supporters of ousted Egyptian President Mohamed Morsy on Friday, August 2. The supporters and security forces clashed in Sixth of October City in Giza, south of Cairo, after the government ordered their protest camps be broken up. Look at the latest violence in Egypt.

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Unrest in Egypt – Morsy supporters walk past makeshift roadblocks at Rabaa al-Adawiya Square in Cairo on Saturday, August 3. Security forces set up the roadblocks outside the square, allowing people to leave but not enter, as they attempt to break up camps set up during ongoing protests over Morsy's ouster.

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Unrest in Egypt – Morsy supporters run among the smoke and fire resulting from clashes with security forces in Sixth of October City in Giza on August 2. The military ousted Morsy, Egypt's first democratically elected president, in early July after days of mass demonstrations. Dozens of Morsy backers angry at Egypt's military-backed government have died in weekend violence in the volatile nation's capital. See photos of protests that have engulfed the country.

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Unrest in Egypt – Egyptian riot police block the entrance to Sixth of October City in Giza on August 2 following clashes with Morsy supporters.

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Unrest in Egypt – Morsy supporters in red helmets march during a protest against the government in Cairo on August 2. Pro-Morsy marches began after Friday prayers, when supporters made their way back to their camp outside the Rabaa al-Adawiya mosque.

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Unrest in Egypt – Morsy supporters march in a demonstration against the Egyptian government in Cairo on August 2.

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Unrest in Egypt – Supporters of Egypt's deposed President Mohammed Morsy gather for prayers at Nasr City, where protesters have installed a camp and hold daily rallies, in Cairo, on Sunday, July 28.

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Unrest in Egypt – A boy wears a tear gas mask as supporters of Egypt's ousted President Mohammed Morsy pray at the camp set up by supporters in the Nasr City area of Cairo on July 28.

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Unrest in Egypt – Doctors treat an injured supporter of deposed Egyptian President Mohamed Morsy during clashes with security forces in Cairo on Saturday, July 27.

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Unrest in Egypt – A wounded Morsy supporter lies on the floor of a field hospital in Cairo on July 27. Thousands of Morsy supporters gathered Saturday in the Nasr City neighborhood despite dozens of deaths the night before and veiled threats from the military.

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Unrest in Egypt – Supporters of Morsy protest outside a field hospital in Cairo where the bodies of slain Morsy supporters have been brought July 27.

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Unrest in Egypt – The body of a Muslim Brotherhood protester, reportedly shot dead after violence erupted the night before, is moved as mourners watch inside a field hospital in Cairo on July 27.

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Unrest in Egypt – Two men mourn Morsy supporters who were killed in overnight clashes with security forces, in Cairo, on July 27.

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Unrest in Egypt – A medic pauses at a field hospital in Cairo on July 27 after tending to the bodies of Morsy supporters reportedly killed in fighting.

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Unrest in Egypt – Supporters of Morsy carry an injured man to a field hospital amid clashes with security forces in Cairo on July 27.

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Unrest in Egypt – Doctors treat a Morsy supporter injured during clashes with security forces in Cairo on July 27.

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Unrest in Egypt – Supporters of Morsy rally in Giza, on Friday, July 26.

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Unrest in Egypt – Supporters of the Egyptian military rally at Tahrir Square in Cairo on Friday, July 26.

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Unrest in Egypt – Morsy opponents rally in Cairo on July 26.

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Unrest in Egypt – Morsy opponents watch a demonstration from a rooftop near Tahrir Square in Cairo on July 26.

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Unrest in Egypt – Egyptian soldiers stand guard atop an armored vehicle on a bridge leading to Cairo's Tahrir Square on Friday, July 26.

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Unrest in Egypt – A Morsy advocate builds a giant portrait of the deposed president Thursday, July 25, while other supporters hold a sit-in outside a Cairo mosque. The military has detained Morsy while an interim government takes shape.

Unrest in Egypt – A man with a pistol and other Morsy opponents detain a suspected Morsy supporter who was wounded during clashes in Cairo on Monday, July 22. Supporters and opponents clashed near the city's Tahrir Square.

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Unrest in Egypt – Men evacuate an injured opponent of Morsy during clashes with his supporters in Cairo on July 22.

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Unrest in Egypt – A man fires a gun during clashes between opponents and supporters of Morsy in Cairo on July 22.

Unrest in Egypt – Morsy supporters run from tear gas in Cairo on July 15.

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Unrest in Egypt – Egyptians in Cairo's Tahrir Square pray before breaking their fast on the third day of Ramadan, the sacred holy month for Muslims, on Friday, July 12.

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Unrest in Egypt – Supporters of the deposed Morsy rally in Nasr City, Egypt, a suburb of Cairo, on Monday, July 8.

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Unrest in Egypt – A man reacts after seeing the body of a family member at the Liltaqmeen al-Sahy Hospital in Cairo, allegedly killed during a sit-in supporting Morsy in front of the Republican Guard headquarters on July 8.

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Unrest in Egypt – Injured men receive medical attention after clashes between supporters of Morsy and security forces in Cairo on July 8.

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Unrest in Egypt – Opponents of Mohamed Morsy gather at Tahrir Square during a protest in Cairo on Sunday, July 7.

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Unrest in Egypt – Supporters of Morsy pray next to the headquarters of the Republican Guards in Cairo on Saturday, July 6, during the funeral of seven people killed during clashes.

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Unrest in Egypt – People carry coffins on July 6 of two Morsy opponents who were killed during clashes in Cairo.

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Unrest in Egypt – A Morsy supporter joins protests near the University of Cairo in Giza on July 6.

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Unrest in Egypt – Supporters and opponents of Morsy clash in Cairo on Friday, July 5.

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Unrest in Egypt – A protester is attended to in Cairo's Tahrir Square during fighting between the pro- and anti-Morsy crowds on July 5.

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Unrest in Egypt – An Egyptian military helicopter hovers over supporters of the Muslim Brotherhood and deposed President Mohamed Morsy in Cairo on July 5.

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Unrest in Egypt – Morsy supporters hold up their bloodstained hands after Egypt's armed forces opened fire on rally in front of the Republican Guard headquarters in Cairo on July 5.

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Unrest in Egypt – Morsy supporters carry a man who was shot during clashes next to the Republican Guard headquarters in Cairo on July 5. State broadcaster Nile TV said a number of those backing the deposed leader were wounded as they tried to storm the headquarters, where Morsy reportedly was being held.

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Unrest in Egypt – A wounded man is helped following the gun battle outside the headquarters of the Republican Guard on July 5.

Unrest in Egypt – Morsy supporters react to an explosion during clashes with police officers on July 5 outside Cairo University in Giza.

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Unrest in Egypt – Egyptian Army soldiers stand guard at the Cairo headquarters of the Republican Guard on July 5 as an Apache attack helicopter flies overhead.

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Unrest in Egypt – Morsy supporters pray near the University of Cairo in Giza on July 5.

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Unrest in Egypt – A man prays on July 5 before the protest near the University of Cairo.

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Unrest in Egypt – Protesters take cover from tear gas during clashes outside the headquarters of the Republican Guard in Cairo on July 5.

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Unrest in Egypt – A military helicopter flies by Egypt's Presidential Palace in Cairo on July 5.

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Unrest in Egypt – Egyptians watch fireworks in Tahrir Square on Thursday, July 4, the day after Morsy's ouster.

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Unrest in Egypt – People dance and cheer in the streets of Cairo on July 4.

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Unrest in Egypt – A Morsy supporter holds a poster of the deposed president during a July 4 rally in Nasr City.

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Unrest in Egypt – A massive crowd gathers in Tahrir Square on July 4.

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Unrest in Egypt – Egyptians cheer and wave national flags as airplanes fly above Tahrir Square on July 4, leaving a trail of smoke in the colors of the national flag.

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Unrest in Egypt – A woman uses a mobile phone to record the July 4 celebrations in Tahrir Square.

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Unrest in Egypt – An opposition protester chants slogans against Morsy near Cairo University, where Muslim Brotherhood supporters gathered on July 4 to show support for the ousted president.

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Unrest in Egypt – A man holds a newspaper near Mesaha Square in Cairo on July 4.

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Unrest in Egypt – Dejected Morsy supporters attend a rally in Nasr City on July 4.

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Unrest in Egypt – A Morsy supporter shows his bloodied shirt during a July 4 rally near the University of Cairo.

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Unrest in Egypt – A young Egyptian boy shoots off fireworks during celebrations in Tahrir Square on July 4.

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Unrest in Egypt – People walk by a pile of Egyptian flags for sale in Tahrir Square on July 4.

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Unrest in Egypt – Crowds throng Tahrir Square on July 4.

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Unrest in Egypt – Egyptian soldiers deploy near Cairo University on July 4.

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Unrest in Egypt – People dance and cheer at Tahrir Square in Cairo on July 4.

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Unrest in Egypt – Adly Mansour, center, stands after delivering a speech during his swearing-in ceremony as Egypt's interim president in the Supreme Constitutional Court in Cairo on July 4. Mansour has served as the head of the country's Supreme Constitutional Court.

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Unrest in Egypt – Armored vehicles with the Egyptian army sit at a checkpoint in the Cairo district of Nasr City on July 4.

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Unrest in Egypt – A Morsy supporter reacts as a military helicopter flies over during a July 4 rally in Nasr City.

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Unrest in Egypt – A boy with face paint the color of the Egyptian flag pauses on July 4 in Tahrir Square.

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Unrest in Egypt – A pedestrian shakes hands with a member of the military at a roadblock in Giza.

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Unrest in Egypt – Security personnel rest on July 4 in Tahrir Square.

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Unrest in Egypt – A man walks to Tahrir Square on July 4.

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Unrest in Egypt – A family sleeps on a bridge near Tahrir Square on July 4.

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Unrest in Egypt – A member of the Egyptian military redirects traffic on July 4 at a roadblock in Giza.

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Unrest in Egypt – Bread is sold near Tahrir Square on July 4.

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Unrest in Egypt – An Egyptian military member guards a roadblock in Giza on July 4.

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Story highlights

Obama administration decision is a dramatic shift toward a major Arab ally

The move responds to a military crackdown and involves hundreds of millions in aid

The United States is not calling the ouster of Egypt's president in July a coup

Officials say Washington still wants to maintain its relationship with Egypt's military

In a dramatic shift toward a major Arab ally, the Obama administration announced a suspension of significant military aid to Egypt on Wednesday over the bloody crackdown on the Muslim Brotherhood.

The move, involving hundreds of millions in U.S. assistance to the Egyptian military, is the culmination of months of debate within the administration about how to respond to the July 3 ouster of former President Mohamed Morsy, Egypt's first democratically elected leader.

"As a result of the review directed by President Obama, we have decided to maintain our relationship with the Egyptian government, while recalibrating our assistance to Egypt to best advance our interests," State Department spokeswoman Jen Psaki said in a statement.

The Obama administration has still not labeled Morsy's removal from office a coup.

Such a designation would require a cut in all but humanitarian aid, a step Obama has been reluctant to take. Last month, the president's top national security advisers recommended he cut most of the aid to the military.

Officials have said Washington wants to maintain its relationship with the Egyptian military and interim government, and the statement noted the United States and Egypt still "have a "longstanding partnership and many shared interests."

But after U.S. calls for Egyptian military restraint over the past few months were met with a crackdown on Morsy supporters, Obama canceled a joint military exercise and announced the review of all American aid to Egypt.

Some military aid was suspended and military shipments from the United States were slowed while the review was underway.

The United States will "continue to hold the delivery of certain large-scale military systems and cash assistance to the government pending credible progress toward an inclusive, democratically elected civilian government through free and fair elections," Psaki said in the statement.

"The United States continues to support a democratic transition and oppose violence as a means of resolving differences within Egypt," she added.

Senior administration officials briefed reporters on details of the decision. The United States will halt a $260 million cash transfer to Egypt and suspend large-scale military systems, like the F-16 aircraft, M1A1 tank parts, Harpoon anti-ship missiles and Apache helicopters. Some of the aid will be "repurposed" to benefit the Egyptian people.

One of the officials said Defense Secretary Chuck Hagel called Egyptian army chief Gen. Abdel Fattah al-Sisi to advise him of the decision. Hagel told him the United States would continue military training and education, a symbol of the long-term relationship.

The aid cut is meant to be temporary with the hope that the Egyptian military will take steps toward restoring democracy.

The United States also plans to meet its commitments for Egypt-related work being performed by contractors.

Non-military assistance for programs like health, education and private sector economic development programs will also continue, Psaki said, adding that the United States would put a premium on assistance going forward that "directly benefits the Egyptian people."

"The United States wants to see Egypt succeed, and we believe the U.S.-Egypt partnership will be strongest when Egypt is represented by an inclusive, democratically elected civilian government based on the rule of law, fundamental freedoms and an open and competitive economy," she said.

The move does not include funding toward security in the Sinai Peninsula and along the Egyptian border with Gaza, as well as assistance for counter-terrorism, Psaki said.

At the United Nations General Assembly, Egypt's interim foreign minister sought to quell these concerns.

Nabil Fahmy said Egypt will hold elections in the spring. He also argued that the political process is open to all "as long as they are committed to the renunciation of violence and terrorism and acts of incitement to them."

But violence has continued throughout the country. Dozens of people were killed last weekend when Muslim Brotherhood supporters clashed with their opponents and security forces.

The statement issued on Wednesday suggested the move could be reversed if the govern0ment took steps to restore democracy.

"We will continue to review the decisions regarding our assistance periodically and will continue to work with the interim government to help it move toward our shared goals in an atmosphere free of violence and intimidation," Psaki said.

On Tuesday, Amnesty International sent a letter to Obama urging the United States to not facilitate arms for Egypt.

"The U.S. government needs to stop providing arms or allowing back door sales of weapons or equipment that Egypt's security forces will likely use to violate human rights," Frank Jannuzi, the group's deputy executive director, said.

"Before sales resume, Egyptian authorities must investigate and prosecute those responsible for recent incidents of excessive force. Otherwise, the Obama administration will be giving a 'get out of jail free' card to those who have violently suppressed peaceful protestors," he said.

CNN senior international correspondent Ben Wedeman said in the short-term, the U.S. decision could have a positive impact in Egypt.

"Immediately, probably, the Egyptian government is going to find it's going to gain somewhat in terms of local public opinion," Wedeman said. "Egyptians I've already been in touch with about this decision or announcement from the United States that it's going to cut aid seem to react positively. There seems to be a lot of frustration with the United States, given its role in Egypt over the last two-and-a-half years since the revolution."

But don't expect to see Egypt's military hurting financially, Wedeman said.

"For the Egyptian government, a cutoff in U.S. aid is symbolically significant, but in terms of the actual amount of money they're getting, it will not make a big difference," he said.

Wedeman said Gulf states have been pouring billions into Egypt since Morsy's ouster. A move to cut off aid would likely anger those allies who have urged the United States to support the military and warned against stopping assistance.

Sen. Patrick Leahy, a Vermont Democrat who chairs the appropriations panel that funds U.S. assistance to Egypt, said federal law "is clear" and requires that aid be severed in the event of a coup.

"Rather than encourage reconciliation and restore democracy as it promised, the Egyptian military has reinstituted martial law and cracked down on the Islamic opposition, which has also used violence," he said in a statement. "The administration is trying to have it both ways, by suspending some aid but continuing other aid. By doing that, the message is muddled. If they want to continue aid to the Egyptian government they should ask Congress for a waiver."